FP&L Renewable Energy Incentives

Incentives Help Customers Cut Cost of Energy Efficient Equipment Upgrades, Conserve Energy, Control Costs

In an effort to help customers conserve energy and control electric bills, Florida Power & Light Company is offering additional programs and significantly increased incentives. FPL’s new plan, approved recently by the Florida Public Service Commission, demonstrates the company’s commitment to partner with customers during this time of rising fuel costs.

Fuel costs, combined with increased summer usage, largely attributed to air conditioning, have caused many customers to experience increases in electric bills.

The significant changes and additional programs are as follows:

• Residential Building Envelope — An increase in the maximum incentive for ceiling insulation will more than double from $131 to $352. An increase in the maximum incentive for reflective roofs increases more than 50 percent — from $240 to $367 per participant. In addition, FPL added an incentive for light-colored roof membranes and reflective roof coatings with a maximum of $1,200 per participant.
• Residential Low Income Weatherization — There is an increase to the maximum incentive for air conditioning maintenance from $35 to $45 per participant. In addition, there is now an increase in the maximum incentive for weather stripping and caulking from $10 to $60. An additional $25 per participant was added for replacing room air conditioners with higher efficiency units, further increasing incentives for this program.
• Residential Heating Ventilation and Air Conditioning (HVAC) — Earlier this summer the PSC approved an increase in the incentive per participant for upgrading air conditioning units to more energy efficient equipment that will increase the average incentive more than 50 percent — from $260 to $400. This change takes place Sept. 1.
• Business Building Envelope — The program now offers window-related technologies such as energy-saving window tinting as part of the business envelope program. Increased incentives for ceiling insulation ($185/kW max); roof insulation ($219/kW max); reflective roofs $(579/kW max); and window treatments ($429/kW max) add extra value for business customers.
• Business Efficient Lighting — Changing to more energy efficient lighting will soon pay back more. There is an increase in this business energy program incentive from $101/kW to $132/kW.
• Business Water Heating program — This new energy conservation program applies to the installation of qualifying heat recovery units or heat pump water heater equipment. The maximum incentive is $881/kW.
• Business Refrigeration — Refrigeration can be one of the largest users of electricity for a business customer. That’s why FPL will offer this new program that pays a maximum of $80/kW for the installation of qualifying controls and equipment that reduces electric strip heater usage in refrigeration equipment.
• Business HVAC — Approved earlier this year, this program will soon offer updated minimum qualifying energy efficiency standards to reflect newer guidelines used by the U.S. Department of Energy Standards as well as raised and added incentives on qualifying HVAC systems. Business incentive programs such as the Direct Expansion (DX), chillers, energy recovery ventilators, thermal storage and more will offer large increases in incentives that will as much as double. The new guidelines take effect Sept. 1.

In addition to these newly added or improved programs, FPL continues to offer residential duct system testing and repair, the BuildSmart(R) program for new homes built with energy efficient features and equipment, and residential energy conservation services such as online home energy surveys. Business customers are encouraged to continue to take advantage of business custom incentives, commercial demand reduction, and business energy evaluations.

For the past 25 years, Florida Power & Light Company and its customers have implemented one of the most successful conservation and energy management programs in the country. In 2005, the company invested more than $100 million on conservation programs and energy management incentives. According to the latest US Department of Energy (DOE) report on conservation programs, FPL was rated number one among utilities nationwide. FPL estimates that the electricity saved through these programs that were approved today would supply 188,000 homes with electricity during the summer peak usage period.

The rising cost of fuel used to make electricity at power plants has caused the fuel portion of customers’ electric bills to rise from 19 to 28 percent. The cost of fuel is a pass-through cost on which FPL does not make a profit. The base rate portion of the electric bill is the non-fuel cost of producing and delivering electricity. This has been reduced by 15 percent since 1999.

Customers are encouraged to learn all they can about conserving energy, installing energy efficient equipment in their homes and businesses and FPL’s incentive programs by visiting http://www.FPL.com.

Florida Power & Light Company is the principal subsidiary of FPL Group, Inc. (NYSE:FPL), nationally known as a high quality, efficient and customer-driven organization focused on energy-related products and services. With annual revenues of more than $11 billion and a growing presence in 26 states, FPL Group is widely recognized as one of the country’s premier power companies. Florida Power & Light Company serves 4.4 million customer accounts in Florida. FPL Energy, LLC, FPL Group’s competitive energy subsidiary, is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at http://www.FPL.com, http://www.FPLGroup.com and http://www.FPLEnergy.com.

Florida Solar Energy System Incentives

Solar energy systems and the components of such systems as certified by the Florida Solar Energy Center (FSEC) are exempt from tax under Section 212.08(7) (hh), F.S. The term “solar energy system” means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing, or using incidental solar energy for water heating, space heating and cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas, or electricity.”

As part of the 2006 Florida Energy Act, the Solar Energy Systems Incentives Program offers rebates for individuals-or businesses to purchase solar photovoltaic, solar thermal, and solar thermal pool heating systems. Solar photovoltaic systems are eligible for a $4/watt rebate, capped at $20,000 for homes and $100,000 for businesses. Solar thermal systems are eligible for a $500 residential rebate or $15/BTU, capped at $5,000 for businesses. Rebates of $100 are also available for solar thermal pool heater installation.

Interested in a Solar Energy System? Solar Energy Systems Incentives Program Rebate can help. Here is the information you need.

This program has been very helpful. When funded*, you could get $500 for a solar water heater and $4/watt for a photovoltaic solar system. As an example, let’s say you got sized for a small to medium 3kW system. You would have gotten $12,000 from the state. Match that with the Federal 30% Tax rebate (calculated after the rebate is deducted) and you were looking at a very inexpensive system.

*When this funding periodically is exhausted, the state then requests Federal monies.

If you are a business owner, solar systems and solar water heaters are tax exempt:

SunSmart Schools – Are you a school and you want Florida state money to install a solar power system in your school? The SunSmart program is funded by the state and managed by Florida Solar Energy Center. (All funds are currently allocated).

Are you a homebuilder in Florida? Sunbuilt has incentives in the form of rebates for Solar Water heaters, in addition to other services. Here is all the information.

Florida Renewable Energy Incentives

According to Florida Statute § 220.193, Florida renewable energy production credit was introduced to encourage the use of renewable energy in Florida. It helped increase the number of facilities that use renewable energy as their main source of energy. All expanded facilities that increase their electrical production and sale by more than 5 percent are eligible for this credit. A facility is in service after May 2006 will be provided this credit. According to this tax credit, annually a taxpayer will receive this credit based on his production and sale of electricity from a new or expanded Florida renewable energy facility. If the facility owned by the taxpayer is a new one, then the credit will be based on the taxpayer’s total electric production. On the other hand, if it is an expanded facility then the credit will be decided, based on the increased electric production after May 2006. The amount is capped at $0.01 per kWh of electricity produced or sold by the taxpayer to an unrelated third party during that tax year. For acessing this credit, the taxpayer first must apply to the Department of revenue by February 1 of each year. Department of Revenue will consult with the PSC to come up with an application form. If the total amount of credits in one year exceeds $5 million then each applicant will be allotted a prorated amount based on his increased sale and production. In case the allotted credits are not used during one year, then it can be carried forward to the subsequent next year until 5 years.

In order to promote environmentally sensitive design and construction, Miami-Dade County implemented a program to expedite the review and approval of permit applications for green buildings. Here “green building” means one whole design operation promoting and construction promoting the preservation of resources and environmentally sensitive constructive practices, systems and materials. For determining whether the building is green building or not, the building official will rely on the review and evaluation by the recognized environmental rating agencies like Florida Green Building Coalition, the National Home Builder Association and the U.S. Green Building Council.

According to Florida Statute § 196.175 enacted in June 2008, an expired Renewable Energy Property Tax Exemption in the year of 1990 was revived. According to this exemption, any real property which is improved by installation and operation of renewable energy source device will be entitled to property tax exemption. The exemption will be given in the amount of the original cost of the device and also the installation cost. But the total amount should exclude any sort of cost incurred due to the removal or improvement of previous existing property during the installation process. If the exemption was filed in the month of January, then during the next 12 months, the tax will be exempted for fully operational devices. If the device was operational for only a portion of that period, then the amount should be reduced in a proportional manner. This exemption cannot be granted for a period of more than 10 years and the device must not be installed before January 2009.

According to Florida Statute § 377.804 enacted in June 2006, Renewable Energy and Energy-Efficient Technologies Grants Program was started in order to promote the demonstration, commercialization, research and development projects using renewable energy technologies and also other innovative technologies significantly increasing energy efficiency for vehicles and commercial buildings. Under this matching grants program, any of the following projects is eligible to apply for established companies in the State, universities and colleges in the state, municipalities and county governments, non-profit organizations, utilities located and operating within the state etc. Various factors will determine the approval of the grant of fund. A project stimulating in-state capital investment and economic development in rural areas will be given preference and also the project should produce more job availabilities and future development of commercial market for renewable energy technologies. The project should also incorporate an innovative new technology or an innovative application of existing technology. To evaluate various project proposals, the Commission may take help from other external organizations like Enterprise Florida Inc. and state universities. It may also solicit expertise of other public and private entities.

According to Modified Accelerated Cost-Recovery System (MACRS) federal government has enabled recovery of investments in property. It can be done through depreciation deductions. A set of class lives for various properties has been declared by MACRS. It is in the range of 3 to 50 years. During this time period the property can be depreciated. According to 26 USC § 168, the eligible 5-year property under energy Investment Tax Credit (ITC) includes – solar electric and thermal technologies, combined heat and power and also wind energy. Large wind facilities are also considered as eligible technology under this provision of ITC. This 5 year plan for wind and solar energy has been in effect since 1986. Under the federal Economic Stimulus Act of 2008 in February 2008, 50% bonus depreciation was added for all the eligible renewable -energy systems which are in service since 2008. Normally to be qualified for this depreciation certain criteria must be met by the project involved. These include the acquisition of the property must have taken place during the year of 2008 or 2009; it must have been in service since 2008 and it must have a recovery period of less than 20 years. If the property satisfies all of these, 50% of the adjusted basis can be deducted in the 2008 or 2009 and the rest will be depreciated over ordinary schedule.